Mainland China and Hong Kong 2017 Mid-Year IPO Review

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KPMG’s latest analysis finds that Hong Kong will continue to see robust IPO activity in the second half of 2017 with momentum to be driven mainly by small and medium sized listings.

In the first half of 2017, Hong Kong recorded 69 IPOs, almost doubled from the 38 IPOs recorded over the same period of time last year. However, total fundraising increased by only 22 percent to HKD53 billion from HKD43.5 billion in 2016 H1 due to the dominance of small to medium sized IPOs.

KPMG forecasts there will be around 80 Main Board IPOs and 70 GEM IPOs worth a combined HKD 170 billion for the full year.

The A-share IPO market, on the other hand, had a strong 2017 H1. Up to 247 companies floated their shares on the Shanghai and Shenzhen stock exchanges, which already surpassed the number of IPOs for full year 2016. This is also the highest first half figure in 10 years. Meanwhile, total fundraising stood at RMB 125.4 billion, which is more than four times over 2016 H1.

KPMG expects A-share IPO activity to continue to be strong in the second half of the year as the regulators continue to focus on clearing the pipeline.